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$1,000. The tax on a mortgage securing a sum exceeding $1,000 and not exceeding $1,500 is 25 cents. Therefore, in any case where a mortgage and bond is given by a private person for a sum not exceeding $1,500, the greater tax would accrue on the bond, and under the above amendment the bond should be stamped. After the secured sum of $1,500 is exceeded and the excess is not greater than $2,000, the taxation on the bond and on the mortgage is equal, being 50 cents on each instrument. Whenever the tax is equal, it is the ruling of this office that the mortgage should be stamped and not the bond.

This office also informs you that the instrument which is relieved from taxation under this amendment should have indorsed upon it that the other instrument is duly stamped according to law. This is a requirement for the benefit of all parties concerned and it should be made as prima facie evidence that the requirements of the law have been complied with.

Respectfully, yours,

Mr. CHAS. H. TREAT,

G. W. WILSON, Commissioner.

Collector Second District, New York, N. Y.

(20876.)

Stamp tax-Bonds.

Bonds given under section 3297, Revised Statutes, by officers of State institutions, for alcohol to be used for scientific purposes, not subject to stamp tax under the act of June 13, 1898.

TREASURY DEPARTMENT,

OFFICE OF COMMISSIONER OF INTERNAL REVENUE,

Washington, D. C., March 16, 1899. SIR: Your letter of the 14th instant, inclosing the bond, Form 432, executed by Hosea M. Quimby, president, et al., for the purpose of obtaining alcohol from bond, free of internal-revenue tax under the provisions of section 3297, Revised Statutes, for use in the Worcester Insane Hospital, which bond was returned to you in order that a revenue stamp of 50 cents, under the act of June 13, 1898, might be affixed thereto, has been received.

You state that "because of the fact that it is a State institution and the expense of the stamp, if attached, would come out of the State treasury, we class it among instruments which are not required to be stamped," and you ask for my decision thereon.

In reply, you are informed that, upon the facts stated, this office is of the opinion that the bond in question is exempt from the stamp tax under the provisions of section 17 of the act named.

Respectfully, yours,

G. W. WILSON, Commissioner. Mr. JAMES D. GILL, Collector Third District, Boston, Mass.

(21312.)

Stamp tax-Bonds of distillers, brewers, etc.

Stamps required on bonds of distillers, brewers, and other manufacturers.—When given in duplicate or triplicate, only the original to be stamped.--Modification of Treasury ruling No. 19707, of July 18, 1898.

TREASURY DEPARTMENT,

OFFICE OF COMMISSIONER OF INTERNAL REVENUE,

Washington, D. C., June 21, 1899. 'SIR: This office has received a letter from Mr. James H. Borland, San Francisco, Cal., calling attention to the fact that in case of a transportation and warehousing bond, Form 236, executed in triplicate, this office requires that the original, duplicate, and triplicate should be stamped with a 50-cent stamp, which seems to be in conflict with the published opinion of Assistant Attorney-General Boyd.

You will please advise Mr. Borland that this matter has been carefully reconsidered in view of said opinion, and Treasury decision 19707,1 of July 18, 1898, is hereby modified as follows:

Bonds of brewers, manufacturers of tobacco, manufacturers of cigars, distillers' annual, distillers' warehousing, transportation and export bonds, are required to be stamped under the provisions of the act of June 13, 1898, with a 50-cent stamp, and when a guaranty company is surety an additional stamp is required denoting one-half of 1 per cent on the premium charged.

Where these bonds are required by law or regulation of this office to be made in duplicate or triplicate, only the original is required to be stamped.

Respectfully, yours,

Mr. JOHN C. LYNCH,

G. W. WILSON, Commissioner.

Collector Internal Revenue, San Francisco, Cal.

(21609.)

Stamp tax-Proposal guaranties.

Guaranties accompanying proposals taxable the same as bonds.

TREASURY DEPARTMENT,

OFFICE OF COMMISSIONER OF INTERNAL REVENUE,

Washington, D. C., September 18, 1899. SIR: I have the honor to acknowledge the receipt of your letter of August 12, 1899, relative to the taxability of guaranties accompanying proposals in receiving bids in the War Department.

'Compilation of Decisions Rendered by the Commissioner of Internal Revenue under the War-Revenue Act of June 13, 1898 (January, 1899), page 50.

You state that under date of August 18, 1898, this office in a letter to you ruled, among other things, that "there does not appear to be anything about the guaranty to proposal blank, which you inclose, that requires a stamp.

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On the 20th of June, 1899, this office ruled, in a letter to Maj. James L. Lusk, of the Office of the Chief of Engineers, that a blank submitted by him, entitled "Guaranty to accompany proposal," was "in meaning and effect a bond, and taxable as such at the rate of 50 cents, and an additional tax of one-half of one per cent on premium charged if a fidelity, guaranty, or surety company becomes guarantor or surety on such instrument."

You say that the slight difference between these forms of guaranty would not appear to affect the question of taxation, and you ask whether the ruling of June 20, 1899, is intended to be a reversal of the ruling of August 18, 1898.

The instrument submitted by the Office of Chief of Engineers was in the following form:

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herewith accompanying, dated

take that if the bid of repairing Government piers at Ludington, Mich., be accepted as to any or all of the items of supplies, materials, and services proposed to be furnished thereby, or as to any portion of the same, within sixty days from the date of the opening of proposals therefor, the said bidder, —, will, within ten days after notice of such acceptance, enter into a contract with the proper officer of the United States to furnish such articles of supplies and materials and such services of those proposed to be furnished by said bid as shall be accepted, at the prices offered by said bid and in accordance with the terms and conditions of the advertisement inviting said proposals, and will give bond with good and sufficient sureties for the faithful and proper fulfillment of such contract. And we bind ourselves, our heirs, executors, and administrators, jointly and severally, to pay to the United States, in case the said bidder- shall fail to enter into such contract or give such bond within ten days after said notice of acceptance, the difference in money between the amount of the bid of said bidder- on the articles or services so accepted and the amount for which the proper officer of the United States may contract with another party to furnish said articles and services, if the latter amount be in excess of the former.

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After a careful reconsideration of this question, this office is still of the opinion that the above instrument is on its face and in meaning and effect a bond, being an obligation under seal whereby certain

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parties called guarantors bind themselves to indemnify the United States in case a bidder fails to perform certain required acts.

You are, therefore, advised that the ruling of August 18, 1898, above specified, was reversed by the ruling of June 20, 1899, and any other ruling inconsistent therewith is hereby modified to conform thereto.

Respectfully, yours,

Brig. Gen. M. I. LUDINGTON,

G. W. WILSON, Commissioner.

Quartermaster-General, U. S. A., Washington, D. C.

(21666.)

Stamp tax-Fidelity and guaranty companies.

Where fidelity or guaranty companies become sureties on bonds, tax is due and payable whenever the premiums are paid.—Method of paying tax.-Tax on renewal of bonds.

TREASURY DEPARTMENT,

OFFICE OF COMMISSIONER OF INTERNAL REVENUE,

Washington, D. C., October 14, 1899.

SIR: I have to acknowledge receipt of your letter of the 21st ultimo, in which you call attention to the fact that the agents of fidelity and guaranty companies in your district are not paying taxes on annual premiums paid, except taxes paid on the original documents.

You say that one agent thinks that where no new policy is issued, and subsequent yearly premiums are paid on a continuous bond or schedule bond, no tax is due. This opinion of the insurance agent is entirely erroneous, and indicates a serious violation of law on the part of the insurance companies. All premiums charged for becoming surety on bonds are taxable whether paid annually or otherwise, and a tax accrues whenever such premium is charged or paid.

You are instructed in regard to the manner of paying tax on such premiums that this office has heretofore ruled that when a premium is paid subsequent to the one on the first issue of a continuing bond, a receipt must be issued by the guaranty company, on which a stamp must be affixed covering the amount of tax due on the premium so charged, and such stamped receipt must be affixed to or filed with the original bond.

If the bond is a continuous one, it requires no additional stamp tax as a bond when the premium is again paid. If the bond is limited by its term to one year, or other period, and it is renewed on expiration of the period either by the issue of a new bond or by a renewal agreement attached to or filed with the old bond a stamp tax of 50 cents as a bond accrues on each renewal in addition to the stamp tax on the premiums.

The principal in a bond is the party issuing the same, whether originally or on renewal, and he is liable to the penalties prescribed in section 7, act of June 13, 1898, for omission to stamp.

You will please communicate this ruling to the parties interested, and you will require any insurance company, or its agent, in your district which has failed to pay the stamp tax in accordance therewith to make a sworn return of such deficiency for the purpose of assessment.

Respectfully, yours,

ROBT. WILLIAMS, Jr., Acting Commissioner. Mr. THOMAS A. LAKE, Collector Internal Revenue, Hartford, Conn.

BOWLING ALLEYS.

(21495.)

Special tax-Bowling alley.

Where a person who has taken out a special-tax stamp for a bowling alley closes this alley and thereafter opens another to the public, the stamp may be transferred to the latter bowling alley under the provisions of section 3241, Revised Statutes, if it remains in his ownership and control.

TREASURY DEPARTMENT,

OFFICE OF COMMISSIONER OF INTERNAL REVENUE,

Washington, D. C., August 11, 1899.

SIR: Your letter of the 7th instant has been received, inquiring whether a special-tax stamp which has been issued for a bowling alley that was open to the public during the months of July and August "but closed for the remainder of the special-tax year" can be transferred "to another bowling alley which has not been open to the public during the months of July and August, but is opened on the 1st day of September."

You are hereby advised that if the bowling alley which is to be opened on the 1st day of September is in the ownership and control of the same person who took out a special-tax stamp for the bowling alley to which you refer as closed to the public prior to that date the special-tax stamp can be transferred under the provisions of the last paragraph of section 3241, Revised Statutes.

Respectfully, yours,

Mr. JAMES A. WOOD,

G. W. WILSON, Commissioner.

Collector Internal Revenue, Portsmouth, N. H.

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